Today's Law As Amended


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AB-2380 Income taxation: exclusion: military survivor benefits.(2019-2020)



As Amends the Law Today


SECTION 1.

 Section 17140.6 is added to the Revenue and Taxation Code, to read:

17140.6.
 (a) For taxable years beginning on and after January 1, 2020, and before January 1, 2025, gross income does not include all survivor benefits or payments received on or after January 1, 2020, and before January 1, 2025, under a Survivor Benefit Plan established pursuant to Subchapter II (commencing with Section 1447) of Chapter 73 of Part II of Subtitle A of Title 10 of the United States Code, relating to survivor benefit plans.
(b) (1) For the purposes of complying with Section 41, the Legislature finds and declares that the goals, purposes, and objectives of this exclusion are both of the following:
(A) To recognize the loss and sacrifice of our military families and give them the support that our community owes.
(B) To provide some financial relief to families that have experienced not only the loss of a loved one, but also often the loss of the sole income of the family, and who are now trying to make ends meet on a portion of that original income.
(2) The Legislature shall use income reporting for the exclusion provided by the Franchise Tax Board as performance indicators to measure whether the exclusion meets the goals, purposes, and objectives stated in paragraph (1).
(3) The Franchise Tax Board shall determine the income brackets of individuals who claimed the exclusion allowed by this section and, notwithstanding Section 19542, shall provide that information to the Legislature in an annual report, submitted pursuant to Section 9795 of the Government Code, to assist the Legislature in determining whether the exclusion is helping families that are financially struggling through the loss of a service member or veteran.
(c) This section shall remain in effect only until December 1, 2025, and as of that date is repealed.
SEC. 2.
 This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.